Can't make your mortgage? Here are some options (2024)

If you're worried about missing a mortgage payment, you're not alone:Nearly 3% of mortgages were in some stage of delinquency in October 2023, from borrowers just 30 days overdue to those facing foreclosure.

Falling behind on your home payments can be nerve-wracking, but you still have options, especially if you act early.

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Reach out to your mortgage servicer and discuss what options are available.They'll likely want to know what your finances look like and whether the issue is temporary or long-term, according to the Consumer Finance Protection Bureau (CFPB), so have documentation handy.

You might also want to connect with a housing counselor approved by the Department of Housing and Urban Development. They'll be able to offer no-cost advice and may suggest options your servicer doesn't.

Take a hard look at your finances to see if there's any spending you can direct toward your mortgage payments. If you can't make cuts, you might consider renting a part of your home or even taking out a personal loan.

Budgeting apps are a great way to get a clear view of your expenses: PocketGuard analyzes your spending, lets you set savings goals and notifies you if you're about to go over budget. It also has a bill payment tracker and bill negotiation feature.

The You Need A Budget (YNAB) app lets users assign a category to every dollar that comes in. YNAB says new customers save an average of $600 in the first two months and $6,000 in the first year.

Most states have additional assistance programs, as do federal agencies like the Department of Housing and Urban Development and the Department of Veteran Affairs.

Keep an eye out for mortgage relief scammers, who may promise to change the terms of your loan or guarantee that you'll keep your house. According to the Federal Trade Commission, asking for payment upfront, a retainer fee or for the deed to your house to be transferred are all red flags.

Forbearance periods can last up to 18 months, according to the CFPB, which can help with a short-term setback like a job loss or medical emergency. It's not a permanent solution, though, and your credit score may still take a hit.

Like forbearance, loan modifications are reported to credit agencies and may affect your credit score.

If your forbearance period is ending, your mortgage servicer might allow you to break up the missed payments into smaller amounts and repay them over months, rather than all at once. Unlike a loan modification, the terms and interest rate wouldn't change.

This type of mortgage relief is available to borrowers after they've missed a payment or more, according to Fannie Mae.Fannie Mae'smortgage repayment calculator shows you what your repayment plan could look like.

If you can refinance your home loan to a lower interest rate, it may lower your monthly payments.

The largest mortgage lender in the U.S., Rocket Mortgage considers applicants with credit scores as low as 580 and offers no-closing-cost refinances. In 2023, J.D. Power ranked Rocket number one for client satisfaction for the ninth year in a row.

If your loan is guaranteed by a government-sponsored enterprise, you may be eligible for refinancing through Freddie Mac's Refi Possible or Fannie Mae's Refi Now programs, both of which guarantee a lower monthly payment and an interest rate decrease of at least 0.50%.

VA loans are eligible for an Interest Rate Reduction Refinance Loan, which streamlines the refinancing process and can help homeowners lower their interest rate, switch from anadjustable-rateto a fixed-rate mortgage, or change their repayment terms — often with simplified underwriting and no new appraisal.

A short sale can significantly impact your credit score, but it might be the best choice if you can't wait for a good offer or if your mortgage is underwater.

Although you'd have to give up your house, a deed in lieu agreement enables you to avoid foreclosure, which can knock your credit score down by more than 100 points and make it difficult to buy another home.

In exchange for surrendering the property, your lender would forgive the remainder of your mortgage, according to the CFPB. Some borrowers request a deed-in-lieu agreement when their mortgage is underwater.

You'll lose any existing equity on the property and may have to pay tax on the forgiven loan balance.

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